Monday, November 24, 2008 The Obama-Biden Transition Team | Economy -- Of the People, By the People

Just took Miss Rogue's suggestion and submitted my feedback to president-elect Obama on his proposed government jobs plan. I wrote:

Thanks for asking for feedback on the plan to save or create 2.5 million American jobs by 2011.

My feeling on the idea of creating jobs in the government sector is well-stated by the Virginia Rebel blog.

I encourage you to reconsider creating these jobs in the public sector and instead put policies in place that will encourage job creation in the private sector.

The Virginian Rebel: Emperor-elect Obama to Save Us From Unemployment, The Business Cycle

Government can only consume, it does not "invest." What they do not want to tell you is that this money has to come from somewhere. Instead of letting the masses of people decide what to do with their own money (i.e. what types of goods to produce), politicians in Washington have determined that what you really want is roads and bridges. This is not job creation, but a reallocation of money from the private sector to overpaid employees in the public sector. It will actually reduce employment. Whereas the private sector will pay employees close to their marginal productivity, the government pays well in excess of the productivity of the individual. Thus, given the same pool of capital to pay employees, the private sector will hire more and produce more goods.

Mon, 24 Nov 2008, 7:30 am EST The Obama-Biden Transition Team | Economy -- Of the People, By the People

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